1 Apr 2008: Investors are doing it for themselves - rise of self directed investor

New research from Barclays Stockbrokers1 reveals that when it comes to making investment decisions, more than half of ISA investors (58%) like to make their own and over one in ten (12%) would like to be more involved than they currently are. In addition, almost a third of ISA investors (32%) already have a self-select ISA and a further 24% are considering taking one out.

Barclays Stockbrokers asked 1,500 adults who have invested in a stocks and shares ISA in the current tax year why they have opted for a self select ISA. The findings show that for many investors, the attraction of taking out a self-select ISA is being able to take control of their investments. Three quarters (75%) of investors are attracted to self-select ISAs because they like to make their own decisions, and more than half (58%) because it gives them control and the opportunity to buy and sell according to what’s happening in the markets. Almost half (47%) are attracted to self-select because it allows them to trade ISA investments actively.

Of those equity ISA investors who sought advice in the past, a third (33%) say they could have come to the same investment decision on their own, despite finding it helpful. Two thirds of investors (63%) claim they did not consult a financial adviser because they relied on their own research, while 43% state that this was simply because they like to make their own decisions.

Tom Ryan, Director at Barclays Stockbrokers said: “Self-select ISAs have empowered investors, giving them the freedom to make their own decisions and to take control of their investments. For many, the ability to buy and sell when they want to is extremely attractive. Others are being drawn into DIY ISA investing as a result of the availability of tools and support available to help them confidently manage their own ISAs. At Barclays Stockbrokers we offer a number of such initiatives including our Investment Selector tool, which has been designed to determine clients’ risk and reward profiles and investment objectives, and Fund Dealing Packages designed to meet the needs of these individual investors.”

For those still looking to invest this year’s ISA allowance there is still time, in the run up to tax year end Barclays Stockbrokers is making provision for all last minute investment applications including opening the phone lines until 8.30pm to tax year end*.

From 6th April, new updated charges will come into effect for all ISA accounts (including those which are currently PEP) the 2008 / 2009 tax year. Furthermore, any Barclays Stockbrokers Funds Market investments will be discounted when calculating the annual administration charges.

1. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,500 adults who have invested in a stocks and shares ISA in the current tax year. Fieldwork was undertaken between 5th - 10th March 2008. The survey was carried out online. The data is unweighted.

* Barclays Stockbrokers last minute ISA timings:

• Telephone sales centre that can open an account and take investment by debit card as well as process investment orders – open until 8.30pm each day until tax year end
• 24 hour account opening and funding online with ability to invest immediately into:
• Funds market funds – 675 funds at a maximum initial service charge of 1.5% and many with nil initial charge
• Investment notes offering capital protection for those who are cautious in these market conditions or notes offering less protection and geared returns.
• Full range of eligible equities · Applications and top ups by post can also be accepted provided that they are received by 5th April.

For further information contact:
Caroline Wells / Nicola Hankey
PR, Barclays Wealth
020 7114 7435 / 020 7114 9813

OR Chantal Heckford / Katie Hayward / Katherine Hobby
Lansons Communications
020 7294 3630 / 020 7294 3631 / 020 7566 9704